This application relates generally to a system and method for categorizing transactions. More particularly, the present invention relates to a system and method for categorizing transactions via one or more transaction identifiers.
Generally, the process of categorizing transactions for financial reporting is a tedious process. Transaction tracking is important to individuals who maintain records for accounting purposes, but they may have difficulty remembering the circumstances of each transaction. To overcome this, some make note of a transaction's category, such as business or personal, after the transaction. The individual may mark sales receipts with this information, store these receipts, and later sort through them when logging transactions. The process of reviewing receipts can be time consuming and receipts are typically small slips of paper that may be easily lost. An individual may seek to surmount such problems by employing separate financial accounts for various transaction categories. For example, one might have a credit card for business and another for personal use. However, this method can also be troublesome, because individuals must ensure that they have the appropriate financial token with them at the time of the transaction. If they do not, they may be forced to employ another method. Furthermore, an individual may mistakenly employ an incorrect financial token, such as utilizing a business credit card for a personal purchase. What is needed is a more efficient system and method for categorizing transactions.